Prepared for : The 6th Annual Clearing, Settlement & Custody Asia

Forum

Presented by : Sean Ring MCSIDate: 22 February 2012

The Absolute Necessity of Operations, IT, and Settlements Training

Operational Risk, anyone?

A Quote from a Guru

• “I want to get the highest and best possible use and effect and result from every effort and action I ever expend in my business, on my job and in my life from this point forward.”

– Jay Abraham

• So what’s your employee’s HIGHEST and BEST use?

It’s not a corporate ladder…. It’s a mountain.

Is Flight Risk Your Best Signal?

• It’s important to understand the distinction between long-term goals and loyalty issues, but even more importantly… turn the question around and ask how this might actually be a huge opportunity for your firm. – The most desirable talent may be the candidates with

the greatest ability to think bigger and better. – Is there a way to channel that vision and ambition into

the company?

My Story

Start Career in Trader

Operations

A great manager

forces me to read about

financial products

Become very well regarded and move to London

Recruited by Head of Futures

Manager sends me to

London Business School

Promoted to Futures Execution

Desk

But didn’t get the

training that I needed

Quit and pondered my future for a year

Became a trainer for

7city in London

Move to Singapore

to help expand

business

Employee Retention

• Foster employee development. This could be training to learn a new job skill or tuition reimbursement to help further your employee’s education.– http://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-retain-employees/

Employee Retention

• When an employee is failing at work, I ask the W. Edwards Deming question, “What about the work system is causing the person to fail?” Most frequently, if the employee knows what they are supposed to do, I find the answer is time, tools, training, temperament or talent. The easiest to solve, and the ones most affecting employee retention, are tools, time and training. The employee must have the tools, time and training necessary to do their job well – or they will move to an employer who provides them.– http://humanresources.about.com/od/retention/a/more_retention_2.htm

Employee Retention

The Bottom Line• Your best employees, the

ones you want to retain, seek frequent opportunities to learn and grow in their careers, knowledge and skill.

Case in Point

• Hire Dynamics has built its corporate culture around employee satisfaction – keeping its good workers and making them better.

• “It’s a central strategy for us, said Dan Campbell, CEO. “We view the retention of employees as one of the most important things we do as an organization. At the end of the day, we think that our ability to recruit and retain quality employees is one of the main things that separates us from other companies in the staffing industry.”– http://blog.hiredynamics.com/2011/05/companies-should-be-wary-of-worker-flight-risk/

The Top 3 Reasons Why Employees Leave Asian Firms

• Notice how “more money” isn’t in the top three…

The Top 3 Reasons Cited For Leaving Asian Firms

0%10%20%30%40%50%60%

Unmet JobExpectations

Management and WorkCulture Issues

Career AdvancementOpportunities

Elsewhere

Percentage

http://www.hrmasia.com/resources/retention/renewing-paradigms-on-employee-loyalty-and-turnover-rates/120046/

Anecdotal Evidence

• Too many ambitious delegates go straight for the CFA.• They know that passing boost their career, so why not?• But they usually aren’t qualified enough, nor are they

dedicated enough to pass Level I.• But the fact they’re going for it in the first place is

management’s fault.

A Much Better Alternative

• To eliminate flight risk, give your employees what they crave. They want…– To know exactly what their job is– To know exactly why their job matters– To constantly add to their knowledge– To feel that their role is worth their while

7 Things Operations, IT, and Settlements Staff Must Know To Perform

What their job is.

Why their job is

important.

How to best do

their job.

Where they are in

the stream.

What the risks are if they don’t

do their job

properly.

How to speak to

their internal clients.

How to escalate

when things aren’t

going as planned.

Investment Operations Certificate

• The Investment Operations Certificate (IOC), formerly known as the IAQ, is a practitioner-led programme for administration and operations staff. Its qualifications equip individuals with an overview of the financial services industry and its regulation as well as providing a detailed picture of their particular industry sector.

• It’s administered by the Chartered Institute of Securities and Investment (CISI).

Why CISI and the IOC?

Investment Operations Certificate

Allows you to recruit and retain best staff

Increases productivity

Reduces business risk

Demonstrates competence to your customers and regulators

worldwide

Unit Selection

• Unit selection depends on individual circumstances but generally candidates are either:– in an overseeing role (as defined by the FSA) working for a

firm, which is authorised and regulated by the FSA. These candidates are required to take the following papers:• Introduction to Securities & Investment• Principles of Financial Regulation or FSA Financial Regulation• a technical unit relevant to the role

– working for firms, particularly those based internationally, which are not authorised and regulated by the FSA. • These candidates may, if their firm agrees, select any three

papers.

Investment Operations Certificate

• The qualification comprises three exam units:

– International Introduction to Securities & Investment

– And

– a regulatory unit, either

• FSA Financial Regulation or• Principles of Financial

Regulation or• Your Country’s Regulatory

Exam

• One of the following technical units:– Asset Servicing*– Collective Investment Schemes

Administration*– CREST Settlement– Exchange-Traded Derivatives

Administration*– Global Securities Operations*– IT in Investment Operations– Operational Risk*– OTC Derivatives Administration*– Administration of Settlement &

Investments – Risk in Financial Services*– ISA Administration– Combating Financial Crime– Global Financial Compliance

Investment Operations Certificate

• Successful delegates will get a certificate in the mail and also be able to use “IOC” on their CV. They also may use “ACSI”, or Associate of the Chartered Securities Institute, after their name.

Continuing Professional Development

• The CISI CPD Scheme has been introduced to enable members to demonstrate their ongoing commitment to continuing professional development to both their employer and the relevant regulator.

• It has been designed to ensure that all members, regardless of seniority, geographical location and industry specialisation, are capable of completing the scheme.

• It is free of charge for members to use and usage is on a voluntary basis. All grades of membership may access the scheme.

• The Institute recommends that members complete a minimum of 35 CPD hours a year with at least one hour being undertaken in each learning type category outlined below.

• Members may log more hours if desired, but these will not count towards the 35 hour total. Upon completion, members will receive a formal certificate.

What Can We Do To Help You?

Profile: 7city Learning Centre SingaporeWho are we?

What's our goal?

Who are our clients?

What's our approach?

In 1999, a small group came together to build a financial training and consulting company that had a vision to create solutions to clients' challenges through learning. Now in 2011, we are 150 people, consisting of more than 40 full time trainers and a wealth of infrastructure support, based in offices in London, Dubai, New York and Singapore.

Our goal, is to help our clients perform by developing a more informed, effective and skilful appreciation of the business in which they work. All our financial, commercial skills, management and personal development programmes are designed to ensure theory is applied through best practice, using case studies, scenarios and high tech simulations.

In the past 11 years we have achieved a lot. We have designed and delivered solutions for more than 325 companies, from global financial institutions, to regional banks, to sovereign funds to public sector authorities outside of financial services.

Whoever we partner with, we pride ourselves on our innovation, our enthusiasm for learning and our commitment to client service. You'll find we're the source of the intellectual, as well as the practical answers needed to succeed .

Our growth has been recognised by the Sunday Times Virgin Atlantic Fast Track four years in a row from 2005 - 2008, and we've won numerous awards for our innovative approach to learning.

We will support you locally and from 7city’s global offices, making us available to you at all times.

Global & Local Expertise

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Learning Solutions

Building on our experience in developing and delivering global learning solutions over the past ten years, we are well placed to build and manage L&D infrastructure solutions for our clients, covering :• Certifications• Assessment Centres• Managed Training

Services

Business School

We’ve booked over 60,000 exams for our clients. Our investment in faculty and technology has enabled us to provide solutions across the globe, including :• Investment Mgmnt

Certificate• Chartered Financial

Analyst • Islamic Finance

Qualification

Professional Skills

The programmes we offer focus on the commercial application of skills and knowledge. Within these courses we use our full range of simulations and case studies across:• Private Banking• Asset Management• Corporate &

Investment Banking• Global Markets

Our business is structured into 3 areas which can each stand alone or be blended to provide our clients with a seamless ‘end to end’ approach to their learning and strategic objectives.

Our Solution Centres

7city offers a range of technical qualifications training for individuals working in, or aspiring to work in, the financial services industry and public sector.

Our Solution Centres : Business School

Business School

We offer foundation level programmes through to threshold competency qualifications, to post graduate professional qualifications designed to demonstrate advanced knowledge and enhance career progression. Every year we prepare more than 15,000 people for these exams. Some examples of the qualifications we can help with:

CFA® Training and 7cityWe have been preparing people for the CFA® exams for over 10 years – 15,000 people globally. We understand what's needed to succeed. It's a combination of personal support from expert tutors and the learning tools, mobile and online, that we've developed and perfected while helping thousands of people pass their exams.

Investment Management Certificate (IMC)All our tutors have direct experience of the exams and industry. Every participant has access to our online portal providing diagnostic and performance analysis. So they know exactly where they stand, what needs more work and, equally importantly, what doesn’t.

Islamic Finance (IFQ)The IFQ was created by the Chartered Institute of Securities and Investment in conjunction with the Ecole Supérieure des Affaires in Beirut. It is Sharia'a compliant and examines the practices used in the Islamic financial markets. It is internationally recognised and is a benchmark in the area of Islamic finance.

Our full time faculty have extensive experience from working with a range of organisations across the Middle East as well as Europe, Americas and Asia.

Our Approach To Design

For over 11 years, we have delivered learning based on specific client remits. We listen, we build, we deliver and we measure the impact we have made. We made a pledge when we started the company, learning should be used to deliver business change for the client. It should be used to translate in to measurable $ or € or AED or £.

LEARNING VALUE CHAIN

Consult & Strategic

Needs Analysis

Identify, Engage &

Partner

Design & Build

Deliver, Monitor &

Embed

Assess, Validate

&Evolve

Why How When ResultWho

PRACTICAL APPLICATION – FOCUS ON THE ‘HOW TO’

E.g.: Adding Value

Profile and Assessment Centre Talent Mapping On boarding & Induction Graduate Programme Learning & Development Business Coaching Certification Simulations

Our Solution Centres : Professional Skills

7city’s IOC Record

• Last year alone we prepared candidates for more than 1,100 IOC exams in the UK.

• We achieved a pass rate of 94% in the technical IOC papers…

• …But that’s still not enough. We need to…

STOKE THE PASSION INSIDE YOUR EMPLOYEES!

Tutors with Real World Experience: Our Dedicated Expert Faculty

Geoff RobinsonHead of Investment Banking

13 years of IB training

Accounting, valuation, and modeling.

Andreas KaraiskosManaging Director – Middle East

15 years of L&D, training exp

Asset classes, private wealth

Innes WrightHead of Financial Modeling

18 years of IB training

Peter ScollenHead of Asset Classes

15 years of IB training

Asset classes, DCM and ECM

Rob Woods

12 years of IB training

Accounting, modeling. Asset classes, DCM and

ECM

David Mignano

20 years of IB training

Accounting, valuation, and modeling.

Peter EvansHead of Professional Skills

20 years of IB trainingValuation and modeling

Lorraine Taylor

Management and personal development.

10 years of L&D, training exp

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Who We Have Partnered With

Additional Resources

• http://7city.com.sg• http://cisi.org• http://SeanRing.com/ioc/the-advantages-of-acquiring-th

e-investment-operations-certificate-ioc-from-cisi/

Reach Out to The Tutor

• Sean Ring MCSI– Mobile: +65 8499 3807– Office: +65 6572 9413– E-mail: Sean.Ring@7city.com– Blog: http://SeanRing.com